Performance-Linked Stock Compensation Plan

「The target for consolidated ordinary profit for the fiscal year is ¥29.7 billion, while the payment condition for consolidated ordinary profit is achievement of at least 90% of the target. Actual profit for the fiscal year was ¥27.068 billion, or 91.1% of the target, so the payment condition was met and performance-linked compensation equivalent to the points granted according to the degree of target achievement was recorded as an expense in accordance with the Directors' Performance-Linked Stock Delivery Regulations. The target for the ES Index is a record high, and the payment condition is achievement of the target. Actual results for the fiscal year did not meet the payment condition, so the corresponding performance-linked compensation was not recorded as an expense in accordance with the regulations. The ROIC target is 7.0%, and the payment condition is achievement of the target. Actual ROIC for the fiscal year was 9.5%, so the payment condition was met and the corresponding performance-linked compensation was recorded as an expense in accordance with the regulations.」

「当事業年度の実績は利益高が目標の91.1％である270億68百万円となり、支給要件を満たしたため、取締役業績連動株式交付規程に従い、目標達成度に応じて付与されるポイント相当の業績連動報酬を費用計上しております。」

「The common shares classified as “Shares with Full Voting Rights (Other)” include 161,000 of the Company's shares owned by The Custody Bank of Japan, Ltd. as trust assets under the stock delivery trust plan for directors.」

「The 3 performance-linked indicators are consolidated ordinary profit, the ES Index (employee satisfaction) and ROIC (return on invested capital).」

「The common shares classified as “Shares with Full Voting Rights (Other)” include 80,500 of the Company's shares owned by The Custody Bank of Japan, Ltd. as trust assets under the stock delivery trust plan for directors.」

「The target for consolidated ordinary profit for the fiscal year is profit of ¥23.9 billion, while the payment condition for consolidated ordinary profit is achievement of at least 90% of the target. Actual profit for the fiscal year was ¥20.015 billion, or 83.7% of the target. As the payment conditions were not met, performance-linked compensation equivalent to the points granted according to the degree of target achievement was not recorded as an expense in accordance with the Directors' Performance-Linked Stock Delivery Regulations.」

「The target for consolidated ordinary profit for the fiscal year is a profit margin of at least 2.73% and profit of ¥22.2 billion, while the payment condition for consolidated ordinary profit is achievement of at least 90% of the target. Actual results for the fiscal year were a profit margin of 3.18% and profit of ¥23.695 billion, or 106.7% of the target. As the payment conditions were met, performance-linked compensation equivalent to the points granted according to the degree of target achievement was recorded as an expense in accordance with the Directors' Performance-Linked Stock Delivery Regulations.」

「The target for consolidated ordinary profit for the fiscal year is a profit margin of at least 2.0% and profit of ¥15.7 billion, while the payment condition for consolidated ordinary profit is achievement of at least 90% of the target. Actual results for the fiscal year were a profit margin of 3.8% and profit of ¥28.156 billion, or 179.3% of the target. As the payment conditions were met, performance-linked compensation equivalent to the points granted according to the degree of target achievement was recorded as an expense in accordance with the Directors' Performance-Linked Stock Delivery Regulations.」

「The target for consolidated ordinary profit for the fiscal year is a profit margin of at least 2.0% and profit of ¥15.4 billion, while the payment condition for profit is achievement of at least 90% of the target. Actual results for the fiscal year were a profit margin of 2.1% and profit of ¥14.558 billion, or 94.5% of the target. As the payment conditions were met, performance-linked compensation equivalent to the points granted according to the degree of target achievement was recorded as an expense in accordance with the Directors' Performance-Linked Stock Delivery Regulations.」

「The Company's shares owned by The Custody Bank of Japan, Ltd. at the end of the second quarter consolidated accounting period are presented as treasury shares in net assets. The carrying amount of these treasury shares was ¥199 million, and the number of shares was 90,300.」

「Based on a resolution at the 64th Annual General Meeting of Shareholders held on 23 May 2019, the Company will introduce a stock delivery trust plan for directors (excluding outside directors; the same applies below) (the “Plan”). The purpose is to clarify the linkage between directors' compensation and the Company's share value, raise directors' awareness of contributing to improved medium- to long-term performance and increased corporate value by having them share with shareholders both the benefits of a rising share price and the risk of a decline, and thereby share the gains and risks arising from share-price movements with shareholders.」

「Under this plan, a trust established with funds contributed by the Company acquires Company shares, which are delivered to directors through the trust in an amount corresponding to the points granted by the Company to each director. Company shares are delivered to directors serving during the five fiscal years from the fiscal year ending February 2020 through the fiscal year ending February 2024.」